Budget 2018 - Pensions and savings

Published: Monday 29 October 2018

The pre-Budget gloom of pension advisers that tax relief on pensions contributions would be withdrawn, was once again misplaced. A cynic might say it is a way of accelerating pension contributions perhaps. 

Instead, all that happened on pensions was that the lifetime allowance for pension savings was increased in line with CPI for 2019-20, rising to £1,055,000. 

Tax on savings was also mostly unchanged. The band of savings income that is subject to the 0% starting rate will be kept at its current level of £5,000 for 2019-20 and the adult ISA annual subscription limit for 2019-20 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs and Child Trust Funds for 2019-20 will be increased in line with CPI to £4,368.